© 2009 VDC Research Group, Inc.
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Understanding soft costs and being able
to marry the best possible mobile
computer with the target user and
application is ultimately what will set
apart mobility innovators and enable
companies to fully leverage mobility
investments as a true competitive
advantage.
To determine "true" TCO, it is imperative to consult both hard (direct) and soft
(indirect) costs. Hard costs consist of hardware and software costs, including
depreciation charged for capital expenditures, as well as salaries and benefits. Soft
costs are more difficult to determine and include expenses associated with operating
and maintaining any mobile solution. Downtime costs, including any productivity loss
and lost revenue streams, factor in here. VDC’s research shows that over 70% of the
cost of owning a mobility solution can come after the initial purchase. This
underscores the significance of taking a long term view during the initial selection
process.
Figure A
Total Cost of Ownership
Understanding soft costs and being able to marry the best possible mobile computer
with the target user and application is ultimately what will set apart mobility innovators
and enable companies to fully leverage mobility investments as a true competitive
advantage. However, organizations looking to cut expenditures will frequently opt for
lower cost mobile computing hardware. In many cases this means the use of a non-
rugged mobile computer for applications that are better served by rugged devices.
The subsequent high frequency of hardware failures in many of these deployments,
many supporting mission-critical applications, significantly impacts operational
effectiveness. According to VDC’s most recent research, annual mobile computer
failure rates exceeding 30% are not uncommon.
